Professional social network LinkedIn’s profit has exceeded expectations due to rapid membership growth and mobile app popularity.
Professional social network LinkedIn’s profit has exceeded expectations due to rapid membership growth and mobile app popularity.
The success of the LinkedIn mobile app has not only spiked traffic, but also opened new channels of income with the sponsored advertisements.
According to Reuters, sponsored news feed marketing has surpassed its initial public offering (IPO).
“We have seen significant gains on the mobile side when compared versus desktop and that’s very consistent with what we’re seeing and hearing industry industry-wide,” Jeff Weiner, chief executive of LinkedIn said.
Monetisation occurs chiefly from selling access to the users’ curriculum vitaes (CVs).
Results of nine consecutive quarters have performed better than anticipated.
With its launch, shares were priced at US$45 each in 2011. Earnings grew with 38 per cent per share for the quarter, 7 per cent higher than predicted.
Share value has improved to the cost of US$228.50, with a revenue of US$363.7 million, again breaching the forecasted US$353.8 million for the second quarter.
The following quarter did not disappoint either, raising revenue estimates of between US$367 million and US$373 million to an outcome of US$1.46 billion and US$1.48 billion.
Membership expanded to 238 million users, indicating a 37 per cent increase since 2012 and a 9 per cent spike since last quarter.
Blog posts by high esteemed professionals, such as Bill Gates, have also boosted LinkedIn’s popularity.
